A Central European Initiative (CEI) summit is held in Zagreb on Monday and Tuesday, where six regional prime ministers, including Hungary’s Viktor Orban discuss security and economy on the margins of Croatia’s one-year rotating chairmanship of CEI.

CEI, a forum of 18 countries in central and eastern Europe, aims to extend support in European integration countries wishing to join the EU. It does so by encouraging EU-compatible regulations, and implementing development projects.

Founded in 1989 in Budapest, it is one of the oldest such organisations. While ten of the countries are EU members (Austria, Bulgaria, Croatia, the Czech Republic, Hungary, Italy, Poland, Romania, Slovakia, and Slovenia), four out of the remaining eight are currently candidates for EU membership (Albania, Macedonia, Montenegro, and Serbia).

Hungarian Prime Minister Orban met with Croatian Prime Minister Andrej Plenkovic on Monday afternoon. The two discussed open issues between the two countries, including Hungary’s refusal to extradite the CEO of Mol, Zsolt Hernadi, to Croatia, where he is under investigation for alleged bribery.

Extradition of Zsolt Hernadi

Hernadi is suspected of having agreed to pay €10 million to the then Prime Minister of Croatia Ivo Sanader in 2009, in return for the conclusion of an agreement between the Hungarian Mol Group and the Croatian government, in which Mol was granted management rights of the Croatian Ina oil company.

Although he was convicted and sentenced to prison for taking the bribe, Sanader’s sentence was later rescinded and a re-trial was ordered, with Hernadi named as his co-defendant in absentia. The new trial started in October, and both he and the Hungarian company deny allegations of bribery.

Although Hungary disputed the warrant, Interpol’s Executive Committee allowed in November this year the renewal of the international arrest warrant for Hernadi, who resides in Hungary.

“We think of this as a legal issue, and politics does not meddle in legal issues in Hungary. We never did, and we won’t in the future. The judiciary must follow its own logic and its own path… I strongly support the complete separation of bilateral relations and international law,” Orban said in Zagreb.

“This government knows very well what the separation of power means, and what are the tasks of both the legal authorities and executive power. We don’t intend to meddle in legal matters,” Plenkovic said.

Ina-Mol

Orban and Plenkovic also discussed the issue of Ina and Mol, the two nations’ energy firms.  Mol is Ina’s largest single shareholder with a stake of little over 47 percent, while the Zagreb government holds nearly 45 percent in the company.

However, ever since Mol acquired nearly 50 percent in Ina in 2008, the company has been mired in quabbling and disputes over management decisions. Two years ago, Plenkovic announced intention to buy back Mol’s stake at Ina, but the price was never agreed to date.

Plenkovic said on Monday that Ina is perceived as a state-owned company in Croatia, whereas Mol is regarded as just a private company in Hungary.

“That’s the key difference. Our stance is unchanged, it is crucial to come to an agreement on the price… our goal is that, until we reach the agreement, the relations between stockholders are improved so they would enable better business to the benefit of both Croatia and Ina-Mol,” Plenkovic said.

Orban said it was an issue to be discussed between two companies, and that Hungary is involved in the matter because they hold a 25 percent stake in Mol.

“Decisions must be made on company level. If anyone asks, I’ll say what shouldn’t be said – we don’t have to force anything. If Croatia and Hungary cannot cooperate here, they shouldn’t. We can go our separate ways, and that means Croatia should buy Ina shares,” he said.

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